Two Common New Year Resolutions: Finance and Fitness

The New Year is almost here, barely a few hours left for the grand celebration to begin. This is the time when people make a number of resolutions. However most of us fail to accomplish them and forget about it as the days pass by.

Now this year most of us are worried about the financial future after the major downfall of the finance market. So everybody might be thinking of improving their own financial condition in the coming year. Together with this, since nowadays people have become much more health conscious, the fitness factor will also be there at the corner of their minds too.

We all probably know that finance and fitness go hand in hand. Many research has also been done to prove the relationship between finance and fitness. A healthy and fit person is bound to be more productive - he will miss lesser days, work hard for longer period and make more money. Similarly, the other way round is very obvious. A financially stressed person will be suffering more from headaches, sleep disorders, ulcers and many more side effects, that would restrain him from performing to his capability.

However some of us are really bad at maintaining a balance with our expenses, we tend to spend much more than what we can afford. Creating a monthly budgeting plan would be a useful strategy in such cases which would as a result reduce some stress and help us to be mentally as well as physically fit. Try to save whatever you can, be it a very negligible part of your income. For example, instead of thinking to save say 30% of the income and fail to accomplish it, just save around say 4,5, or 6 percent. This would turn out to be quite a good amount in future.


By the way, I came across a very innovative and different way of representing financial fitness using mathematical formula. That was something like this:


Spend less + Extra Income - Debt * (Savings & Interest)/Monthly Budget


So, let this be your prime resolution for the coming year.

Happy New Year!

Real Estate Predictions for 2009

We know that not even a fortnight is left for the New Year to arrive. People are busy with their preparations to celebrate Christmas and welcome New Year in a grand way. But at the back of their minds there are several queries and thoughts regarding the financial scenario in the coming year: What will be the effect on Real Estate market? Whether banks will pursue foreclosure? Will they modify the existing loans?...

These are some of the real estate predictions for the year 2009 as predicted by some of the realtor experts and news channels.

• There will be a rise in the number of foreclosures. Banks will prefer to foreclose rather than revise or modify the loans, which will result in increase in the number of tenants than home owners.

• The existing home prices will highly depend on foreclosures. As the foreclosures start going down, the home prices will go down as well, and vice versa.

• Continuation of slow down in homes sales. According to the statistical records provided by National Association of Realtors (NAR), 2008 proved out to be the third consecutive year in which the home sales have fallen.

• There will be a decline in the number of Real estate agents and brokers. This is mainly due to the downfall of real estate market and also nowadays internet makes it easier for people to do any real estate transaction.

• The experts predict that the mortgage rates will definitely increase but won’t be more than 8%.

• The increase in demand will affect the rental rates. It will go up drastically since new constructions will grind to a halt. A perfect time for all the landlords.

• More and more agents will increase their commission rates. Due to the availability of lesser homes to be sold, they will take the benefit of buyer’s market.
  

• Last but not the least the Internet will become much more effective than the agents. More and more people will opt for buying or selling a property through internet, instead of relying on the agents.

Please do give your advises or any suggestions that you think will be helpful here, or if I have missed out on any important factor.

Basic Tips to avoid the Nightmare of Mortgage Fraud

The number of Mortgage fraud cases is increasing rapidly in US causing financial as well as emotional damage to homeowners. You have to be cautious especially if you are a first time home buyer, belong to minorities or you are a senior citizen. They are the main targets for the fraud scam. However that does not mean that the rest of them will turn a blind eye.

Listed below are some of the tips to avoid mortgage fraud:

• Shop around and gather the sufficient real estate knowledge so that you are aware of your needs and requirements.

• Do not make any hasty decision regarding the mortgage agents. Check out the background and previous records of the professionals, and whether they are licensed or not.

• Figure out your own finances – how much you can afford, your credit score and credit report, the total debt you have till now and other such related factors that affects your personal finance. Never borrow more than your limitation.

• Check properly the history of the property you are going to buy. Confirm whether the seller actually owns the property from your local tax assessment office.

• Never ever give false or incorrect information about your income, debt, credit history or your employment, etc. Otherwise this can prove out to be a nightmare of foreclosure in future.

• Do not sign any document without properly understanding all the particulars filled in or which has some blanks left unfilled. Check for the minute details, and if something which is not important is written, don’t sign before correcting them.

• Avoid any third party involvement when you are arranging for loan. Work directly with the mortgage broker or the lender.

• Do not allow any other person, however friendly you are with him/her, to use your name and Security number for the purchase of property.

• Insist on getting all the closing documents and check that each and every necessary detail is mentioned appropriately. Keep a copy of all such papers and documents.

Hopefully I am able to provide you with the basic steps that you need to be cautious about to avoid mortgage fraud. Please do give your suggestions or comments so that I can cover up whatever I have missed out here.